Good day all,
The last few weeks have been somewhat dull for me on the local equities front. I do not see many interesting charts except to continue monitoring those that I identified in the weeks before. In general, markets have been doing well ever since the small correction two months ago. A slight recovery has been running ahead somewhat quietly. Locally, the recovery was not exactly broad-based as some locals did not take cue. Today, I am looking at ThaiBev, Y92.SI.
ThaiBev has been on a long uptrend since the start of 2012. Whatever the fundamental reasons there may be, the chart gives me the impression of a growth counter – the kind that just seems to keep going up no matter what. Recently, though, something formed on the chart that made me sit up. A very good-looking head and shoulders looms at the top of ThaiBev’s chart. This head and shoulders is so good-looking that it should bode well with those using either methods of identifying a head and shoulders: three points or peaks, or three regions of price action (my style). Volume behavior is also giving this pattern away very badly – or, in to put it properly, volume is perfect: huge volume making up the left shoulder, before tapering down into the rest of the pattern. Slight peaks in volume occur at the head and the right shoulder.
As usual, the only action I believe I should take now is to wait for confirmation of direction. A head and shoulders pattern, like most patterns, is a consolidation phase for a stock. Traditionally seen as bearish, however, my experience tells me that is not always the case. Let us see how this goes.
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